Amaravati Capital Project Gets ₹13,500 Crore Loan from World Bank and ADB
In a significant step forward for the development of Amaravati, the capital city of Andhra Pradesh, the World Bank and the Asian Development Bank (ADB) have agreed to grant a loan of ₹13,500 crore for its development. This financial support is aimed at creating a sustainable and inclusive city with improved infrastructure and governance. The loan agreement was finalized following a series of negotiations between the Andhra Pradesh Capital Region Development Authority (APCRDA), the World Bank, ADB, and the Union Finance Ministry.
Loan Details: The World Bank and ADB will each provide ₹6,750 crore (US $800 million each), amounting to a total of ₹13,500 crore for the Amaravati development project. The remaining funds will be covered by the state government, supported by the central government.
Project Focus: The loan will support various development initiatives, including the construction of trunk roads, utility ducts, stormwater drainage systems, flood mitigation structures, green spaces, water supply systems, and public buildings designed with green standards. Additionally, the funds will strengthen governance and financing frameworks in the region.
Implementation Agency: The APCRDA has been designated as the implementing agency for the project, tasked with managing the loan funds and overseeing the development activities. The state government has issued an order for APCRDA to ensure the timely allocation and transfer of funds to advance the city’s construction.
State Budget Allocation: The state government has allocated ₹3,445.33 crore for Amaravati’s capital development in its annual budget, with ₹3,000 crore dedicated to infrastructure, ₹400 crore for annuity payments to farmers under the land pooling system, and other allocations for smart city initiatives.
Previous Loans and Investments: In the past, the state government has secured other loans, including a ₹11,000 crore loan from the Housing and Urban Development Corporation Ltd (HUDCO). The total funding requirement for the city’s development is estimated to be ₹23,000 crore, which will be mobilized through loans, bonds, and central grants over the next few years.
| Key Points | Details |
|---|---|
| Why in News | The World Bank and ADB have granted ₹13,500 crore for the Amaravati development project. APCRDA has been designated as the implementing authority. |
| Total Loan Amount | ₹13,500 crore (₹6,750 crore each from World Bank and ADB) |
| Implementing Agency | Andhra Pradesh Capital Region Development Authority (APCRDA) |
| Budget Allocation by State | ₹3,445.33 crore (₹3,000 crore for infrastructure, ₹400 crore for annuity to farmers) |
| HUDCO Loan Amount | ₹11,000 crore for Amaravati capital city development |
| Future Funding Requirement | ₹23,000 crore to be mobilized through loans, bonds, and central government grants |
| Project Name | Amaravati Inclusive and Sustainable Capital City Development Program |
| Chief Minister of Andhra Pradesh | N. Chandrababu Naidu |
| Capital of Andhra Pradesh | Amaravati |
| World Bank Headquarters | Washington, D.C., USA |
| ADB Headquarters | Manila, Philippines |
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